CORPORATE SOCIAL PERFORMANCE AND FINANCIAL STABILITY: EVIDENCE FROM ISLAMIC, SOCIAL AND CONVENTIONAL BANKING MODELS
This paper addresses two key issues in Corporate Social Performance (CSP) research. First, it investigates the impact of CSP on Financial Stability (FS), and second, it examines the influence of different banking models on the relationship between CSP and FS. Using a cross-country sample of 117 fina...
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| Format: | Article |
| Language: | English |
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Bank Indonesia
2024-11-01
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| Series: | Journal of Islamic Monetary Economics and Finance |
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| Online Access: | https://jimf-bi.org/index.php/JIMF/article/view/2273 |
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| author | Syed Alwi Bin Mohamed Sultan Wan Marhaini Binti Wan Ahmad Obiyathulla Ismath Bacha Roslily Ramlee |
| author_facet | Syed Alwi Bin Mohamed Sultan Wan Marhaini Binti Wan Ahmad Obiyathulla Ismath Bacha Roslily Ramlee |
| author_sort | Syed Alwi Bin Mohamed Sultan |
| collection | DOAJ |
| description | This paper addresses two key issues in Corporate Social Performance (CSP) research. First, it investigates the impact of CSP on Financial Stability (FS), and second, it examines the influence of different banking models on the relationship between CSP and FS. Using a cross-country sample of 117 financial institutions from 36 countries over an 8-year period (2013-2020) and the System Generalized Method of Moments (GMM) estimation method, it finds that banking models significantly affect the CSP-FS relationship. This is attributed to diminishing marginal benefits of economic growth beyond a certain level of financial intermediation, which increases financial risk. The results give new insights into the synergies and divergences between different banking models and the overarching goals of social performance and financial stability. This research contributes novel insights that can inform policymakers, regulators, and industry stakeholders in their quest for a more resilient and sustainable banking sector. |
| format | Article |
| id | doaj-art-d799592fa8b14addb55223988a48ba76 |
| institution | Kabale University |
| issn | 2460-6146 2460-6618 |
| language | English |
| publishDate | 2024-11-01 |
| publisher | Bank Indonesia |
| record_format | Article |
| series | Journal of Islamic Monetary Economics and Finance |
| spelling | doaj-art-d799592fa8b14addb55223988a48ba762025-01-06T03:03:11ZengBank IndonesiaJournal of Islamic Monetary Economics and Finance2460-61462460-66182024-11-0110481184010.21098/jimf.v10i4.22732273CORPORATE SOCIAL PERFORMANCE AND FINANCIAL STABILITY: EVIDENCE FROM ISLAMIC, SOCIAL AND CONVENTIONAL BANKING MODELSSyed Alwi Bin Mohamed Sultan0Wan Marhaini Binti Wan Ahmad1Obiyathulla Ismath Bacha2Roslily Ramlee3Universiti Malaya, MalaysiaUniversiti Malaya, MalaysiaINCEIF University, MalaysiaInternational Islamic University Malaysia, MalaysiaThis paper addresses two key issues in Corporate Social Performance (CSP) research. First, it investigates the impact of CSP on Financial Stability (FS), and second, it examines the influence of different banking models on the relationship between CSP and FS. Using a cross-country sample of 117 financial institutions from 36 countries over an 8-year period (2013-2020) and the System Generalized Method of Moments (GMM) estimation method, it finds that banking models significantly affect the CSP-FS relationship. This is attributed to diminishing marginal benefits of economic growth beyond a certain level of financial intermediation, which increases financial risk. The results give new insights into the synergies and divergences between different banking models and the overarching goals of social performance and financial stability. This research contributes novel insights that can inform policymakers, regulators, and industry stakeholders in their quest for a more resilient and sustainable banking sector.https://jimf-bi.org/index.php/JIMF/article/view/2273corporate social performance, csp index, financial stability, islamic banking, social banking, values-based banking. |
| spellingShingle | Syed Alwi Bin Mohamed Sultan Wan Marhaini Binti Wan Ahmad Obiyathulla Ismath Bacha Roslily Ramlee CORPORATE SOCIAL PERFORMANCE AND FINANCIAL STABILITY: EVIDENCE FROM ISLAMIC, SOCIAL AND CONVENTIONAL BANKING MODELS Journal of Islamic Monetary Economics and Finance corporate social performance, csp index, financial stability, islamic banking, social banking, values-based banking. |
| title | CORPORATE SOCIAL PERFORMANCE AND FINANCIAL STABILITY: EVIDENCE FROM ISLAMIC, SOCIAL AND CONVENTIONAL BANKING MODELS |
| title_full | CORPORATE SOCIAL PERFORMANCE AND FINANCIAL STABILITY: EVIDENCE FROM ISLAMIC, SOCIAL AND CONVENTIONAL BANKING MODELS |
| title_fullStr | CORPORATE SOCIAL PERFORMANCE AND FINANCIAL STABILITY: EVIDENCE FROM ISLAMIC, SOCIAL AND CONVENTIONAL BANKING MODELS |
| title_full_unstemmed | CORPORATE SOCIAL PERFORMANCE AND FINANCIAL STABILITY: EVIDENCE FROM ISLAMIC, SOCIAL AND CONVENTIONAL BANKING MODELS |
| title_short | CORPORATE SOCIAL PERFORMANCE AND FINANCIAL STABILITY: EVIDENCE FROM ISLAMIC, SOCIAL AND CONVENTIONAL BANKING MODELS |
| title_sort | corporate social performance and financial stability evidence from islamic social and conventional banking models |
| topic | corporate social performance, csp index, financial stability, islamic banking, social banking, values-based banking. |
| url | https://jimf-bi.org/index.php/JIMF/article/view/2273 |
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